Treasury Bills 2022: How To Build A T-Bill Ladder (Bond Ladder | CD Ladder)

[@DiamondNestEgg]

📢 We've launched! Get 15% off our brand-new bond courses thru 11:59PM ET on 4/30/2024 for Financial Literacy Month - enter coupon code bondfans2024 at checkout - see links below for more details! ⭐ Bond Beginners (our foundational-level bond course): www.diamondnestegg.com/bond-beginners ⭐ Bond Masters (our intermediate-level bond course): www.diamondnestegg.com/bond-masters ⭐ Or get both & save $100: www.diamondnestegg.com/home#_paa2isucf ⭐ Join our super-supersaver membership for regular market updates & monthly live member Q&As 👉 kzbin.info/door/nexoc6tvesvcCEzZhmI-Agjoin CORRECTION - at 0:09, we meant 13-week T-Bills (not 12-week)! Published this one a bit too quick! In any case, thanks for visiting our personal finance channel! We hope this free content will help fast-track your financial journey! Please note that there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances. Everyone's financial journey is different. If you wish to set up a consultation call & discuss whether we can help you on an individual basis, please complete the Work With Us form on our website: www.diamondnestegg.com

[@JC-li8kk]

Thanks. If my wife can’t get her TD account unlocked by October 28th (form 5444 is in the mail) can I buy her I-Bond as a gift in my TD account & then transfer it to her TD account once it’s unlocked?

[@blippacg]

Can you confirm, the rates you give for your T-Bill investments are annual numbers, correct? So if you're getting 3.5% that's for a 12 month term?

[@stephaniedewitt8976]

How do you reinvest the 4 week funds into the 13 week t bill on treasury direct?

[@rb5061]

When do you believe that the 10-year T-Notes will peak in 2023?

[@michaelavery3964]

Dude! Suze Orman just gave a huge shout out to your channel. I was just dying when I heard it! I'd love to be a fly on the wall at your dinner table tonight. (And she's right. Your tutorials are top notch. You're an excellent teacher)

[@Vaughnny]

Someone on reddit suggested a T-Bill Ladder to me, so I found your video on KZbin and now I know what he was talking about. Very helpful, thanks. You talk a bit slow so I watched your video at 1.5x speed and it was the perfect speed lol

[@thomasborda2145]

You're one of the most clear and concise speakers I've ever watched. Great vids. Thanks.

[@chriss3625]

I have my emergency fund in 52 week T-bills… 12 of them… every month I reinvest for another 52 weeks… I feel better knowing if I ever lost my job I could get by for a year. Plus I don’t pay any state tax on the interest…

[@xtctrader1467]

I've constructed my T Bill ladder with a maturity each month for the next 6 months. When one matures, I roll out 6 months. Since the new one is bought at a Discount, I take the difference (currently about 2.25% of the Face Value) and invest in a Stock Index ETF (Dollar Cost Averaging)

[@DiamondNestEgg]

Thanks for sharing

[@johnc7279]

Just an FYI Suze Orman thankfully recommended your channel on her most recent podcast.

[@DiamondNestEgg]

Thanks for letting us know!

[@xst-k6]

Great, I'm glad Suze is watching these videos, she could learn a great deal from the Professor 🤣

[@kindnesstoall]

She certainly did! Apparently Suze Orman has a huge following! She's great!

[@kindnesstoall]

@The Pascha Bunny really? You must have had a bad experience.

[@julhe8743]

@The Pascha Bunny why? Please could explain the reason? Ty

[@joelsarchitectureresearch]

Thank you so much. You are my favorite finance youtuber right now. Keep it up!

[@michaelmclaughlin1958]

Recently done something similar. Bought 3mo, 6mo, 9mo, and 1 year treasuries initially. Intent was to take maturing instruments to 1 year duration. Recently I also added some 2 year durations too. My time horizon isn’t for years and I have only invested about 20% of the usable cash. Love your vlogs. They always make sense and your illustrations are spot on.

[@DiamondNestEgg]

Glad you‘re enjoying the channel & thanks for sharing!

[@kellymulderino7156]

yeah but how profitable is this strategy really?

[@nancyyoungs933]

Since my 13 wk T bills are maturing I have been buying 17 wk T bills! I like the higher rate yet the 17 wk are fairly short term (just in case). Thanks for giving me the confidence to do this and make more money than leaving it in the bank earning practically nothing! Not sure if I will purchase I bonds for 2023.

[@1linkbelt]

I have been investing in T Bills as per the article you spoke about and it works just fine for me. I have moved money from my 2 credit unions into this investment. I buy directly from TD. (Your video explains this procedure very well,)

[@DiamondNestEgg]

Thanks for the feedback!

[@msheehandub]

Just found this channel and instantly connected with your information! Binge watching now! Thank you!

[@tomnitkowski3823]

how do Fidelity, Vanguard, etc benefit buy selling t bills at auction on their website since no fees are charged?

[@rickdunn3883]

How when you know it's time to get back into the equity market?

[@tomm.8892]

Checked this morning ... Vanguard Federal MM has a 7-day SEC yield of 3.3%+. Currently, it's a great place to hold your money while building your ladder.

[@nancyyoungs933]

Question that I am not sure about, please. When reading about recent auctions which is the rate I am getting, the High Rate or the Investment rate? Thanks!!!

[@DiamondNestEgg]

The investment rate Nancy. More details here: T-Bill Rates, Pricing & Interest | High Rate vs Investment Rate kzbin.info/www/bejne/oZbIo553ab2Uf80

[@WeibenWang]

thanks you your video, I built a t-bill ladder. I also watched your video on how to trade on Vanguard, and in other videos, you've said you would general rather trade at a brokerage than Treasury Direct, so I started there. I found it easier to do on Treasury Direct. First, I find the Vanguard website really confusing, and I managed to screw up my first test trade. Second, they have a seven day hold period for new funds in a brokerage account, so you have to plan ahead. Third, there's no way to automatically reinvest, at least that I could find, so you have to be sure be around to make the trade in the window between the announce and auction date. Treasury Direct on the other hand allows to you schedule trades up to two months in advance. You can also set them to reinvest automatically; no need to come back month after month to do it manually. And there's no hold period; they withdraw the money from your bank account on the settlement date. So, I have all my initial purchases set up over the next couple of months, and they'll roll over automatically as they mature for the next year, unless I intervene. It seems much less hands on; set it up once, and it should run on its own until I stop it. Now you just have to wait till the dates come around for it all to get started.

[@DiamondNestEgg]

Thanks for sharing your insights!

[@randomweirdo123]

Your channel is absolutely amazing. I really wish I had found your channel 15 years ago. But, better late than never. Thank you so much

[@dronai]

The problem I'm having with laddering is, the down time betwwen the action date date and issue date. so if I had $100K and the maturity date is Nov 10, but the next aution date is Nov 17, with an issue date of Nov 22, the money goes back to your 0 earning bank account for two weeks ! If I place an order earlier when the funds are stilled tied up to solve this problem, that makes me nervous.

[@spalover3]

This is such a help for most of the population!!! Thank you!! I sent this to all of my single lady friends!!!

[@DiamondNestEgg]

Thanks for sharing!

[@nuevegasti]

In your 26-wk ladder example, where you buy every month for the next six months, I would suggest that on your first month, buy 26-wk using 1/6 of principal and buy 4-wk using 5/6 of principal. On the second month, your 5/6 P becomes due. You then keep rolling your 4-wk P until it is consumed buying the 26-wk bills. You may also introduce 13-wk buys. Not entirely 4-wk buys while waiting for the 1/6 to become in play.

[@KBEGG104]

so if you reinvest, do you get the rate you originally "bought" at or do you get the new rate for that term that was recently auctioned at?

[@ChrisChase-y3w]

Is there an option to choose automatic reinvesting in Vanguard, or do you let the TBills mature and then manually reinvest?

[@fraa888grindr6]

A great video. Thank you very much. Would really enjoy a follow-up video with math.

[@bacardimgtow4505]

So there is no option to compound the interest with T-Bills? Bonds? Any securities?

[@maabrahams]

Hi! Great videos: thank you! Here's a question re: T-bills I have if you're looking for video topics: Assume I do not need access to any cash for a full year & assume all bills will be held until maturity. Which strategy will result in best return at the end of a year: A 4-week Tbill bought and rolled over 12 times. OR a 52 week Tbill. I'm guessing the answer is different depending on how rates rise and/or fall during that time period... Hmmm

[@alb1471]

Can you reinvest with Treasury Direct the proceeds of your maturing T-Bill minus the interest accrued and how does that work?

[@fresh_mornings]

Crarity is POWER! thank you for clarity woman!

[@timw491]

Really helpful Jennifer. Heard of CD ladder, but not of T bill ladder. Appreciate your describing the process so well.

[@patrickd1014]

Thanks!

[@DiamondNestEgg]

You‘re welcome - glad you enjoyed the video!

[@Me-xm4tg]

Thank you for all your advice. So to get the 5.25% not 5.12% you must roll over to another 6 month or comparable CD . Is that correct. Thanks again for all your great content .

[@fk1028]

The Schwab money fund SNAXX is a daily compound fund and is yielding better than most Treasury bond and is 100% liquid. In WA, there i sno state tax therefore no state tax on the fund either. Should I keep the Schwab fund?

[@vivisimonvi]

9:44 - I'm new to treasury stuff but can this strategy be revised to start investing into 3 sums right away instead of having to wait 8 weeks in between now that we have a 17 week tbill? Not sure if the timing would be better if you actually wait 8 weeks in between buying 26 week bills.

[@snowlion777]

You are awesome lady!) I truly enjoyed this video. Excellent explanation, please and clear. I am right now choosing between T-bills and I-bonds. What would you recommend?

[@DiamondNestEgg]

Stay tuned - this vid will out in a bit

[@zonezip]

What if you set this up and the Interest Rate goes down very quickly? Will you lose money? Also how do you exit the Ladder? Thank you for such a great KZbin Channel.

[@linneisenhower2571]

Great channel !!! How about GSE’s vs cd or treasuries ?

[@Kim-sc6sj]

Question: Between the Auction Date and the Settlement Date, when does the government take the money out of our bank account? Same date as the auction date?

[@xst-k6]

Expecting the inflation to jump once the US oil reserves are depleted. I think I'm going to hold off until end of Oct 2022 (expected depletion date) before deciding on t bills investing. Great video as usual 😀👍🏽

[@DaniElle-di4ho]

If you invested in 4-week t-bill you could be making money in the meantime though

[@TheRetirementTrainStraightTalk]

@@DaniElle-di4ho Yes, I agree. Timing the market is never good

[@goofball6180]

So are you just sitting in cash while you wait?

[@xst-k6]

@@DaniElle-di4ho done! Thank you! Just bought the 6 week t bill with a ytm around 2.8% 😀👍🏽

[@DiamondNestEgg]

You guys are great - I really appreciate how you support one another here!!

[@kenstanczak3159]

All Great videos! Regarding the purchase of new issue CDs: Just wondering if any of your videos address the issue of which sponsoring banks to avoid or if there is any way to judge the relative financial stability of a sponsoring bank when selecting a CD for purchase?

[@terriabbott1374]

Hi Jennifer, would you do a video explaining annualized interest with 3, 6, 9, and 12 month CD's or T-bills and how that compares to keeping money in a money market account that is currently above 2%. When it is really more advantageous to get that short term CD or Bond?

[@DiamondNestEgg]

I’ll add it to our list - thanks

[@danflaherty1132]

MM accounts are completely liquid, but offer less yield. CDs and Bills will tie up your cash. Also the interest from T-Bills is tax-exempt at the state level.

[@loupb9539]

Started with 4-week with Treas Direct, now switching to13-week for the higher %. I bought 6k thru Etrade for an old IRA account. It appears that I was purchasing via secondary market, not a new issue, since the maturity date was set and it wasn't exactly13 weeks. I assume the secondary yield should be very close to the latest auction results. After years of having cash with Wells and Chase at 0.01, these rates are like found money!

[@DiamondNestEgg]

Thanks for sharing!

[@rons7921]

Is the interest rate paid APY or do you get that total interest amount when the T bill matures?

[@rafaelcarrillo3250]

Hello. Do you have any clips in your videos explaining how to extend the maturity of the ladder? At the moment I am rolling over 6 month T-Bills on a monthly basis and could go as far as 3 years. Please also comment on when you would recommend doing that - I assume once the Fed may be done tightening (say just before the two rate increases that are expected)?

[@tiffany-uk9bk]

Do you have a video like this for investing in t bills with an LLC?that’s what I’m trying to do at the moment also would I need a trust before buying any under my llc? Thank you so much!

[@cookmaster3626]

Thank you. You are the TRUE DIAMOND advisor on Fixed Income T Bill investing.

[@malanalan1]

is there a way to build T-Bill staircase? I am not comfortable with ladders.

[@mtb3553]

Do you currently recommend as of 2/16/23 recommend 26 wks @ 5%, or 13 or 17 weeks with reinvestments? Also does reinvestment have to be or original investment could you change the 13 to 17 weeks?

[@taloweryus]

FYI, Charles Schwab has a fixed income ladder builder tool that looks pretty interesting. It lets you pick between CDs and Treasuries. You can pick from one of their predefined ladders or set up your own. The DIY options looks pretty flexible and detailed. Note, this is not an endorsement as I haven't actually used it to set up a ladder. Just thought you all might be interested.

[@DiamondNestEgg]

Thanks for sharing Tim

[@jjd903]

It sounds like your strategy is to compound returns. I am interested in treasuries to produce income. How would I ladder T Bills while pocketing interest income? Thanks

[@johnd9031]

Fidelity has an option to build a t bill ladder. I’m keeping my t bill ladder short term as interest rates are expected to rise over the next year. When inflation seems to be coming down I’ll extend the term of my ladder to 2 year t notes. Very good video.

[@DiamondNestEgg]

Thanks for sharing

[@rightangletriangle3188]

Similar strategy, will increase the ladder duration when Fed blinks.

[@jaysant6958]

3:30 My 4 week t bill yielded more than may 8 week, and my 8 yielded more than my 13 week. Is this normal? I thought the longer the term, the higher the yield-just like in that time stamp of the video. And I looked at recent past T-Bill performances and it still looked like the 4 week ones were giving higher yields than the longer term ones even though they were issued the same day. What might I be missing here?

[@you0rsp1]

This is very interesting but I'm confused so please forgive my ignorance. Why buy 4 week and 8 week bills and then roll into 13 week bills. Aren't the yields annualized? So to get that full yield (2.703 and 3.046) don't you have to roll those for a year? I guess what's confusing me is why you wouldn't just buy 13 week bills and roll those. I just got a lump sum of money and I want to save a portion in t-bills and want to understand the best way to do it. Thank you for sharing this info.

[@patriciahankel911]

Do you buy all the ladder at the same time?

[@longhorn99]

What would you recommend for someone with large cash position but needs liquidity to occasionally fund hard money bridge loans or Mezz debt between $500k-2.5m per loan? I may see one deal a month or so but often see multiple funding deals near end of year.

[@bido8176]

Those interest rates are per year annualized, not for 8 or 13 weeks. So you are really getting 1/4 or 1/6th of the rate shown for the term of the T bill. Is it alot of work to keep rolling them every 8 or 13 weeks? Or can you set it up to do it manually? I used Treasury Direct usually.

[@DiamondNestEgg]

Yes, they are annualized. Investment returns are typically quoted on an annualized basis. You can auto-roll with TD - I talk about that in the TD section of this video (towards the end): kzbin.info/www/bejne/qHfYmnZjirOYg8U

[@productivecough7148]

Question: Based on the Treasury Direct schedule, 4 and 8 week bills are both auctioned off on Thursday's of each week and 13 week bills are auctioned the following Monday. To maintain the 4 week spacing you mentioned, after your 13 week ladder gets rolling, you should buy on these three days bunched together and not space these purchase dates out...correct? Great channel by the way!

[@mariceldb2990]

Thanks for the detailed explanation of treasury bill.

[@mytravls]

How did you use funds from your roll over IRA for these T bills purchase?

[@hrhsophiathefirst4060]

You do an admirable job of researching and explaining these opaque means of investing. I have done CD ladders in the past when they were profitable and will set up a T-bill one for some of my cash on hand!

[@DiamondNestEgg]

Glad you're enjoying our videos!

[@Rog502a]

Thank you, please let us know when you decide to go longer term.

[@srujan99]

It is very informative. While going through the other channels and this channel on tbill ladder, got an idea of weekly tbill ladder.. I want to know is there any cons with this weekly strategy.. example I want to create a 17week tbill ladder... So purchasing 4 consecutive 4week tbills, 4 consecutive 8week tbills, 4consecutive 13week tbill and 4 17week consecutive tbills with auto renewals.. as soon as 4week expires, invest in 17week like so on so forth... Want to get the ideas from the fellow supersaver community group as well so posting here ..

[@jimclark5037]

one think I like is how this should be easy to maintain a ladder once built. as they mature it gets deposited back into your account. in a "test" $1000 4-week t-bill, my bank notified me of a "APA TREAS 310" deposit transaction ... and I know it's time to reinvest.

[@DiamondNestEgg]

Thanks for sharing!

[@ThisOrThat13]

So if I understand 4:33 correctly. Started at week 4, 8, 13 in November. Then you continued into a independent week 13 Bill for all 3 until you didn't want to ladder anymore.

[@DiamondNestEgg]

Correct - that is the plan. We'll have an update on this shortly.

[@JKBreton]

I will be investing in the next couple of weeks ~$100K into T-bills. I want to build a ladder where I can re-invest every 4 to 8 weeks just like your example. What terms would you suggest given the current and expected rates through Spring 2024? Thanks!

[@user-wq2my7gc1r]

I own T-Bills. This is a good strategy to maximize return and flexibility. Better than what the banks give

[@DiamondNestEgg]

Thanks for sharing

[@NickyP1]

Are these annualized rates of returns? I.e., if the predicted rate is 3.5%, you'd only get that full 3.5% gain on a 52 week bill, and the shorter duration bills are pro rated/not actually earning as much interest? If so it seems like only large sums would be favored for something like this, and starting out with 1K, 2K, would prob be better off in a high yield savings account that's gaining 2-3%, no (unless those minimal sums are for a 52 week bill)?

[@DiamondNestEgg]

The rates are annualized

[@chickenwingwingwing]

+1000% to the other comments here, super helpful content and no bs. I saw on Schwab they offer a predefined Treasury ladder (you can customize # of rungs and time commitment), would be grateful if you can spin a video to explain this further! Thanks again

[@DiamondNestEgg]

Ok - it's on the list!

[@OksanaKulakova-t3i]

Vanguard or Fidelity, and why?

[@LukePrejean-x3z]

I want to know how to find inexpensive stock with high dividend.

[@raydupree3478]

Hi Jennifer, You mentioned that you bought 4, 8 and 13 -week T -Bills in October. I'm just beginning and a little confused. The Fidelity site does not allow me to buy three different maturities. Am I missing something? Thanks Ray

[@marywrong7041]

It is better to shop around at different brokerages. I have found Fidelity in the secondary market gives better % than others. Treasury direct as the primary market will give the best price on T-Bills. We must do our homework.

[@DiamondNestEgg]

Thanks for sharing

[@nancyyoungs933]

You gave me the confidence to buy a T bill from Treasury Direct! I like the 13 week and I am thinking of building a ladder using 13 week T bills! Thank you!!!

[@DiamondNestEgg]

You're welcome - glad you enjoyed the video!

[@dennehygroup]

I'm so happy to have found you! Thank you so much for your expertise in this matter. EXACTLY what I was looking for during this economic uncertainty!

[@weihong2949]

At what point should I stop laddering, and put money into T-Notes? Some mentioned next year, which is vague. Should I get the signal when Fed completely stop the rate-hiking, or, the signal is when Fed *slow down* it

[@DiamondNestEgg]

I'll have a video on this if/ when we start doing this.

[@sandrahoward5512]

Thank you! I’m investing $1,000 every week into 13 week T-Bills.

[@DiamondNestEgg]

Thanks for sharing!

[@Sekhmet-IV]

Thank you so much for your amazing videos! Subscriber for sure!! Have quick question: I realize this video was made awhile back, but if we were to consider investing within our TIRA or RothIRA, would it be more beneficial to consider investing in a CDs instead of Treasury Bills with excess funds? Yields are slightly higher, and not subject to taxes in these types of accounts (right?)

[@lotoex]

Make sure the CD isn't callable.

[@123narnar]

Can you use the auto run feature to automatically tell your brokerage account to buy another T-bill instead of you doing it manually?

[@DiamondNestEgg]

That is the purpose of auto-roll - I'll have another video on this shortly

[@vivianlai9040]

@@DiamondNestEgg Does the auto-roll include the additional interest earned?

[@SergioRuiz-wx8hw]

@@vivianlai9040 No that will be returned to your account. Where the original T bill was purchases from.

[@Dividendless]

Excellent content. No BS, just data for the long term serious investor. Thank you!!!

[@tmack5853]

Thank you for your simplified explanation. My children are required to subscribe to your channel

[@erniewebber4100]

Hello and Thank you for all the insights. I am conflicted on the merits of just purchasing a 13 week T-bill and then doing an auto roll, as opposed to doing the 4 Wk, 8 Week, and 13 Week bond ladder in succession. Is the main benefit being able to capture an upticking rate by staggering the purchases or are there other benefits? Also at what point in the 4 week would I purchase the 8 week , and at what point to trigger the 13 week, after the 13 week I assume it would be auto roll.

[@iratetaxpayers2090]

I had a similar question at the 3:31 mark. Historical data from US Treasury direct seems to show 13 week T-bill was available for auction during the weeks of Sep 2022. Thus, why begin with 4 and 8 week T-bill purchase to begin the ladder? In one another of your videos, "4Week TBill Hits 6 Buy Now Or Not The BLIP", seemed to indicate 4 week T-bill was more susceptible to yield fluctuations which I infer would just say go with 13 week T-bill rotation. I can hear in my head your disclaimer that everyone's situation may be different.

[@Kryptic1189]

I'm doing this with 26week t-bills using a portion of my emergency savings in case of job loss. Better yields than HYS accounts (almost 2x) but less liquid. Gives me a 6 month cushion if I lose my job during recession. Once yields start falling and stock market starts to get safer I'll probably stop rolling over the bills and invest the money into a dividend index or something. This isn't my retirement fund. Just a portion of emergency fund that I can be a little riskier with.

[@jessehovis839]

I agree, if you are careful you can totally use a good portion of your emergency fund to ladder assuming you have access to the funds every 4-8 weeks.

[@Kryptic1189]

@@jessehovis839 Yeah definitely. Great point. I buy every week actually so once the ladder "resets" I will have income equivalent to my weekly pay each week to roll over or use in an emergency. On paper it seems reasonable to me so time will tell.

[@tomwest3878]

Exceptionally well done! Never did I think I'd be buying T Bills...but here we are!

[@danflaherty1132]

Same here. Cashed in my bleeding bond funds and started my first ladder today. This was done inside my IRA so no tax consequences.

[@markhayes9130]

@@danflaherty1132 Could you explain "done inside my IRA"? Are you referring to moving money from an IRA directly to T-Bills? Does that not require a withdrawal from the IRA...which is then taxed? Thank you for your time. Newbie here!

[@danflaherty1132]

@@markhayes9130 No problem. My IRA is in a brokerage account. So I just sold bond funds within the IRA and bought T-Bills within the IRA. As long as no money leaves the IRA, no taxable withdrawal exists. Similarly there are no tax consequences from capital gains from selling the bond funds, nor T Bill interest earned within the IRA, until withdrawal.

[@johnsmith-dm2tq]

investment ladder QUESTION, if i have auto invest turned on for my * weeks ladder, and want out due to something like stock market drop, how do i get out of it? is it just an on/off slider i turn off before a certain date?

[@DiamondNestEgg]

That will depend on the brokerage company

[@briaf3370]

You are one of the very very few people I believe has actually read al those books behind you.

[@freddy4ification]

This was super helpful, I appreciate how clearly you showed your reasoning. So now I am wondering, since you intend to maintain the ladder as long as interest rates are rising, where do you pivot your short term investments when rates peak and then begin to fall?

[@DiamondNestEgg]

I'll let the community know when the time comes - it's too early to start thinking about that now

[@digdoug9678]

I'm guessing you would take advantage of a rising economy by buying stocks, ETFs, etc.

[@rajk9634]

I bought a 5k/4 week/ tbill . It has autoroll. Fidelity does not let you roll it into a 26 week. Maybe you should do an update on redeeming / roll into different duration one. What happens if you do not have auto roll like a 17 week tbill. Does it automatically get redeemed and the accrued amount go back to cash account.

[@varunsayalauthor]

Great video, what are your thoughts on buying ETF (ticker: TBIL) as an alternative to this laddering strategy?

[@DiamondNestEgg]

I’ll have to look into it when I have a moment

[@AlfWong]

Thank you for your informative videos. I am trying to build a17-week T-Bill ladder. I'm confused about the time. I have a 4-week T-Bill maturity on 4/11/2023. Would I buy the 17-week T-Bill with auction date of 4/5/2023 and issue date of 4/11/2023 or would I buy the 17-week T-Bill with auction date of 4/12/23 and issue date of 4/18/23? Will my money be available from the 4-week T-Bill when it matures on 4/11/2023 to pay for the 4/5/2023 17-week T-Bill? The maturity money is going back to my back account. Thank you in advance for your advice.

[@markfleming11]

When trying to set up T-Bill ladder do set up reinvestment options ?

[@DiamondNestEgg]

In my case, only for the 13 week because when the 4 week & 8 week expire, I want to roll them over into a 13 week. Reinvestment typically only works for Treasuries with similar maturities.

[@neuplus4]

can you explain how to have dividends reinvested in notes rather than taking distribution on treasury direct?

[@DiamondNestEgg]

What do you mean by dividends on notes? If you mean interest on your T-Bills, the only option you have via TD is auto-roll, which only deducts the purchase price of the next T-Bill so most likely, some of the interest earned from your previous T-Bill will remain uninvested.

[@jimshriner8303]

I do not see the "links below" to which you refer periodically. Thoughts on why? Great information, regardless! I love your videos.

[@DiamondNestEgg]

Thanks - the links are in the description below the video.

[@afterdark6822]

If the Fed starts cutting rates I would still be in T-Bills until a certain point. You would just end up paying more for less yield if you were in short duration and the Fed cut and you wanted to roll over. If you were in a longer duration the T-Bill would go up in value and as I understand the formula the T-Bills value would be increased by a multiple of it's duration for every 1% reduction in interest rates. e.g. 1% cut 2% value increase (2 year T-Bill)

[@mikli1018]

If I buy using my rollover, traditional and roth ira, would I lose my state (NY) tax exemption benefits?

[@oliverlstewart2977]

I bought a (1yr ?) $1000.00 Treasury Bill in March and it cost $938.00 which I don't understand. I'll watch your 26 minute How to Buy Treasury Bills, Notes, Bonds. I may even have to watch this video again. Which they had a Continue Education Class at the Community College on buying Treasury Notes.

[@p.granger8824]

In case anyone else had this question, it's because the interest on these is received at the end. You receive $1000 but it only cost $938, the difference is the interest you will receive at the end.

[@ilu8409]

Thank you Jennifer for your step-by-step lesson on T-Bill laddering. I just made a purchase of a 26-week T-Bill on Fidelity. Watching for interest rate and set to buy another 26-week T-Bill in November.

[@DiamondNestEgg]

Thanks for sharing

[@jcchelsea]

great video, going to buy my first T-bill today

[@DiamondNestEgg]

Glad you enjoyed the video!

[@goof260]

Great videos. they have helped me learn and helped push me to pull the trigger on Treasury purchases.

[@tellwilliams4493]

All right, I’m trying to get the most bang out of my buck if I buy a one month or four week bond at 5.5% what’s my return in one month is at 5.5% and then the next I can buy another one month bond and do it all over again month after month am I going to make my 5.5% or whatever the going rate is

[@DiamondNestEgg]

Rates are annualized

[@blue-fj9ky]

Today I loaded the boat with 13 week bills. The yield beats my broker's interest rate on cash and money market funds. Will evaluate again when they mature! Thank you for the expert opinion and perspective!

[@DiamondNestEgg]

Thanks for sharing!

[@shoofly529]

Another excellent video! And as @Michael McLaughlin posted, you, " always make sense and your illustrations are spot on."!!